Mon, Feb 8, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Commodity markets continue to offer investors value in February - Credit Suisse Asset Management

Thursday, March 10, 2011
Opalesque Industry Update - Commodity markets continued to increase in February despite mixed global macroeconomic conditions. Prices were supported by inflationary concerns and strong emerging markets demand amidst tight inventory levels for raw materials.

Nelson Louie, Global Head of Commodities at Credit Suisse Asset Management, said, “Uncertainty in the Middle East and North Africa remains high. The focus of the ever-changing situation shifted from Tunisia and Egypt to Libya. As a result, concerns that unrest would spread to oil-producing countries were materialized. As February came to a close, the situation in Libya remained uncertain and speculation continued as to how events there would unfold. This led to a sudden spike in oil prices late in the month, which weighed on equity markets, at least temporarily. It was not surprising to see a ‘flight to safety,’ with precious metals performing quite strongly.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Fundamentals for many key commodities continue to improve due to a combination of strong demand and a variety of supply shocks, which have exacerbated already tight inventories and have helped to shrink limited excess capacity. Amidst this backdrop, we believe commodities are poised to serve investor portfolios well. We also believe investors will continue to benefit from the diversification benefits commodities provide.”

The Dow Jones-UBS Commodity Index Total Return rose 1.32% in February. Overall, 11 of the 19 index constituents increased in value. Despite negative performance in January, the Precious Metals sector was the strongest group in February, up 9.07% as a result of Silver’s stellar performance, gaining 19.97%. Precious metals increased as a result of renewed inflationary concerns. Similar to the previous month, Agriculture continued to do well, rising 0.95%, mostly as a result of Cotton’s gains in a tight inventory environment.

The Credit Suisse Total Commodity Return Strategy group periodically produces updates on relevant industry topics. For a copy of their white paper, “How Commodities Can Help Investors Face the Uncertainty of the Inflation/Deflation Debate”, please email ir.betastrategies@credit-suisse.com.

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider